Any Experience with Reduce Home Loan 3.19% (Comp. Rate) Owner Occupied?

Following the recent cut to the cash rate by the RBA, my current lender is yet to make a decision if they will pass on the cut. From past experience, my feeling is they will not pass on the full rate cut. I am with Currently paying 3.92% comp. variable rate.

Was searching internet and came around Reduce Home Loans offering 3.19% comparison variable rate with free 100% offset account and redraws and $0 upfront fee. Basically no fee at all.
First time I have heard about them. I think this is highly competitive and the lowest advertised rate currently offered by any other lender on the market.

I am thinking to make the switch.
Anyone had any experience with Reduce Home Loans, have heard about them before or can provide any useful input/suggestion?

If not Reduce Loans, then please suggest which other lender is best to approach when refinancing $270,000.

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  • +1 vote

    Need to add 0.05% for the offset account


    Your provider are doing 3.48% right now, so your first course of action would be to give them a call. Usually a quick chat and some indication that you're willing to move is enough for them to give you a small cut.


    work out the payback period as there are costs to move loans and discharge fees. Also - ensure it not low rate bait for switching and then they increase the rate later


    Im in a similar situation as you, with Loans, wanted to go to Reduce.. still with Loans though.. I want to get away - I do have one warning for you with Reduce..

    During the 'hardest time' to get a loan (about 8 months ago), I tried to re-finance a 1 bedroom unit investment property from Loans to Reduce, had about 75% LVR, I applied, gave them all the info, they gave me approval to proceed, I completed all relevant documentation, they took $250 from my account specifically for a valuation, AT THIS POINT they turned around and said 'o no sorry we cant actually loan for you', I was like 'okay cool, understood, just refund the $250 as you haven't actually provided me with a service, you've just said yes yes yes then taken my money then said no…', they refused to refund. Had to take them through the Australian Financial Complaints Authority to get a refund…


    Reduced Home Loans is charging me 3.59%
    I would at the present moment choose Athena as they promise they always pass the same cuts they offered to new customers to the old customers.